Western Union finds 60% of Saudi consumers prefer digital money transfers 

Special Western Union finds 60% of Saudi consumers prefer digital money transfers 
Jean Claude Farah, president of the Middle East and Asia Pacific, Western Union. (Supplied)
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Updated 30 December 2022
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Western Union finds 60% of Saudi consumers prefer digital money transfers 

Western Union finds 60% of Saudi consumers prefer digital money transfers 

RIYADH: Given that Saudi Arabia’s consumers are largely and naturally tech-savvy, it is hardly surprising that almost 60 percent of consumers who send money abroad prefer digital money-transfer services, compared to 22 percent who want choice and 17 percent who send cash through retail channels only, according to research commissioned by Western Union. 

However, many still want the power to choose between online and retail experiences — depending on their convenience and needs. Exclusive insights show that today almost 60 percent of consumers who send money abroad prefer digital money-transfer services, compared to 22 percent who want choice and 17 percent who send cash through retail channels only. 

The study surveyed over 1,500 money-transferring people in Saudi Arabia and asked how, when and why they move money internationally. 

“Saudi Arabia consumers recognize the convenience moving money securely through digital channels brings,” Jean Claude Farah, president of the Middle East and Asia Pacific, Western Union, told Arab News in an exclusive interview. 

“COVID-19 pandemic also played a major role in accelerating adoption of digital payments, as lockdowns and movement restrictions encouraged consumers to switch to cashless alternatives.” 

However, he added, none of this compares to the efforts of the government and the regulator, who have been making significant strides toward digital transformation in the country. 

“Since launching their ambitious National Transformation Program, the country’s visionary leaders have been steadfast in developing the necessary infrastructure to support this evolution,” said Farah. 

“As a result, today Saudi Arabia ranks seventh for its digital competitiveness among the G20, while internet penetration across the country sits at an impressive 98 percent.” 

The study outcomes demonstrate that citizens and residents have been part of this journey — largely opting for online options over in-person experiences, as they benefit from the country’s increasingly advanced digital framework. 

Farah said the Kingdom’s increasingly advanced digital framework, coupled with the consumers’ eagerness to adapt, has bolstered Saudi Arabia’s position as one of the leaders of the digital economy. 

Spurring digital growth 

The research also aligns with Western Union data, demonstrating strong customer preferences to move money digitally. In the first three quarters of 2022, the company experienced double-digit year-on-year growth in the volume of digital transactions from Saudi Arabia. 

When asked what factors contributed to this phenomenal growth, Farah said: “Consumers remain highly motivated to support families and loved ones and are typically resilient in their efforts to do so. Over the last few years, movement restrictions shifted consumer behavior from retail to digital, spurring digital growth. The remittance industry was no exception.” 

He added: “Our digital growth is strong, and we will continue to prioritize how best we can serve our customers so that we continue to grow. This means continuing to invest in digital customer acquisition and focusing on ensuring customers who wish to move from retail to digital are able to do so seamlessly.” 

Influence of receivers 

The research also shows that receivers of funds strongly influence how much and often their senders transfer money. Overall, 34 percent of senders say their families or loved ones’ financial situation drives decisions on the frequency and flow of funds. 

Sixty-eight percent also say their receiver influences the company they choose to send money through, and 74 percent state that their transfer method of choice  — digital, retail or a mix — depends on how their receiver can collect the money. 

Moreover, 74 percent of those surveyed expected to send money through wire transfer in the next 12 months, while 66 percent hoped to receive it. 

However, senders also struggle with a cost-of-living dichotomy: 73 percent said they need to send more money as the cost of living in their receiving country has increased. Yet 67 percent believe that a higher cost of living in their country of residence means they cannot transfer as much as they previously did. 

“There are many factors that influence remittances, such as differential unemployment rates, inflation rates and cost of living,” explained Farah. “This is because to remit is a personal decision: unique to individual circumstance, and often done with the intention to support family based in home countries around the world.” 

“Given the broader global economic climate, and the need to keep pace with daily financial needs, we expect remittances to continue to grow in the near future,” he continued. 

Women prioritize differently 

The study also shows that more women in Saudi Arabia send money transfers more often than once a month than men. Nearly a quarter of the women surveyed — versus 21 percent of men — say they move money multiple times within a month. 

Also, 55 percent of the surveyed group believed men move money primarily to pay for family support, and 42 percent felt that women transferred sums for financial commitments, future savings and academic endeavors. 

“Globally, women comprise slightly less than half of today’s expatriate workers,” Farah said. 

He added: “They are more empowered than ever before as they move internationally and shape global economies. In line with Vision 2030, Saudi Arabia is focused on attracting the finest local and international minds to bolster economic development. 

“Their ambition to increase women’s participation in the workforce to 30 percent by 2030 means that ensuring greater access to financial services is imperative, particularly with the rise of new technologies.” 

Committed to the Kingdom 

Asked what steps the company is taking to offer stronger financial opportunities to help consumers better manage their financial lives, Farah said Western Union, which has been operating in Saudi Arabia for over 20 years, is deeply committed to the Kingdom. 

“Today, Western Union offers its own branded digital money transfer services, as well as digital services with agents in the country, he said. 

“Additionally, we offer our services through over 200 retail agent locations,” he continued. “Through our retail and digital channels, customers can send money into billions of bank accounts, as well as millions of wallets and cards across more than 130 countries and territories. 

“Real-time transfers are available in 100 of these countries. Cash-payout across our global network is also available in over 200 countries and territories.” 

He said the company comes across a recurring theme: consumers want choice in how they send money — based on convenience and need. So, while scaling its digital solutions is the company’s priority, they also want to ensure no one is left behind. 

This means tailoring solutions for the digitally disinclined segments of the population, such as those accustomed to walking to the nearest location to send money in cash to their family back home. 

“Our customers trust us with their financial resources; we earn this trust by delivering upon our commitment to move their money reliably, safely and at speed,” he concluded. 

“We believe that ensuring customers have a choice in how and when they move money globally will play a significant role in helping them manage their daily financial needs.” 


Saudi Arabia’s real estate supply reservations more than double

Saudi Arabia’s real estate supply reservations more than double
Updated 06 December 2023
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Saudi Arabia’s real estate supply reservations more than double

Saudi Arabia’s real estate supply reservations more than double

RIYADH: Citizens in Saudi Arabia are gaining greater access to residential units as the real estate supply reservations surged 110 percent year on year in November to reach 12,503, according to new figures.    
The Kingdom’s National Housing Co. announced that residential units were sold at competitive prices starting from SR250,000 ($66,649) compared to the previous year’s rates, in which the lowest contract amounted to SR321,000 per residential unit, the Saudi Press Agency reported.
This falls in line with the Gulf country’s plans and strategies to launch several extensive residential projects in order to achieve a balance between population growth and rapid urban expansion.   
This also comes as the rise in population density has led to increased demand for housing, meaning the Kingdom is working to boost the real estate supply to meet this need, aligning with a sustainable urban approach.
This rapid increase in reservations is mainly attributed to the launch of a number of residential projects in various regions, the most prominent of which is the inauguration of the Al-Fursan Suburb in Riyadh which aims to provide the largest real estate supply with a high level of quality and luxury. Other projects include the Sadayem Suburb which was launched in Jeddah along with many housing schemes in distinctive locations within the main cities.
In fact, the number of residential projects reached 46 during 2023, thereby cementing Saudi Arabia’s innovative model for real estate development.
National Housing Co. is the leader and enabler of the real estate development sector and the largest major developer of suburbs and residential communities in the Kingdom characterized by quality of life.  The company pumps more than 300,000 housing units into eight suburbs and six residential communities on an area of more than 120 million sq. meters, accommodating more than 1 million citizens.
It seeks to find solutions to secure supply chains with high quality and more sustainable construction materials, as part of the company’s keenness to increase the real estate supply with residential options according to international standards.
All the firm’s efforts are directed to achieving the goals of the housing program by raising the percentage of residential ownership for Saudi families to 70 percent by 2030.


Council of Ministers to approve Saudi general budget on Wednesday

Council of Ministers to approve Saudi general budget on Wednesday
Updated 05 December 2023
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Council of Ministers to approve Saudi general budget on Wednesday

Council of Ministers to approve Saudi general budget on Wednesday

RIYADH: Saudi Arabia’s Council of Ministers will hold a session on Wednesday to approve the Kingdom’s general budget for the new fiscal year, Saudi Press Agency reported on Tuesday.

A preliminary budget statement issued in October showed predictions of real gross domestic product growing by 0.03 percent this year compared with a previous forecast for growth of 3.1 percent.

The document also projected the government would post a budget deficit of 1.9 percent of the gross domestic project in 2024, 1.6 percent of GDP in 2025, and 2.3 percent of GDP in 2026.

The statement said “limited budget deficits” would continue in the medium term.

Meanwhile, total expenditure was seen as rising to SR1.262 billion in 2023, from an earlier estimate of SR1.114 billion, before slowing down marginally to SR1.251 billion in 2024.

A government press conference will be held on Wednesday, with the participation of Minister of Finance Mohammed Al-Jadaan, during which he will address the state’s general budget for the next fiscal year, and the numbers and indicators of the contents of the budget will be announced.
The finance minister will also answer questions during the conference, which will be broadcast live on Saudi channels.


Saudi Arabia offers tax incentives for companies moving regional HQs to Riyadh

Saudi Arabia offers tax incentives for companies moving regional HQs to Riyadh
Updated 05 December 2023
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Saudi Arabia offers tax incentives for companies moving regional HQs to Riyadh

Saudi Arabia offers tax incentives for companies moving regional HQs to Riyadh

RIYADH: Saudi Arabia said on Tuesday it will offer tax incentives for foreign companies that locate their regional headquarters in the Kingdom, including a 30-year exemption for corporate income tax.

The tax incentives include zero income tax for foreign entities that move their regional headquarters in the Kingdom, and these benefits can be availed from the date of the regional headquarters issuance license, according to Saudi Arabia’s Ministry of Investment. 

Saudi Arabia’s program to attract foreign companies to open their regional headquarters in the Kingdom is a joint initiative between the Ministry of Investment and the Royal Commission for Riyadh City. 

The regional headquarters program aims to encourage international companies to open their regional headquarters in the Middle East and North Africa region in Saudi Arabia, and to materialize that the Kingdom is offering a wide range of benefits and incentives. 

Saudi Arabia’s Minister of Investment Khalid Al Falih said that Saudi Arabia is offering more incentives to foreign companies which open their regional headquarters in the Kingdom which includes special benefits for firms complying with Saudization requirements. 

He added that the friendly business environment in Saudi Arabia has made over 200 companies relocate their headquarters to the Kingdom. 

Saudi Finance Minister Mohammed Al-Jadaan said: “The new tax exemptions, granted on the activities of regional headquarters of international companies in the Kingdom will give these firms more clarity of vision and stability, which will enhance their capabilities for future planning and expanding their business in the region, starting from the Kingdom,” Al-Ekhbariya reported. 

Earlier in November, Al-Falih said that Saudi Arabia has already surpassed the targets of the regional headquarters program which aimed to attract 160 international firms by the end of this year. 

In an interview with Bloomberg, Al-Falih noted that the regional headquarters program is a long journey and added that the Kingdom is working with international entities to create the right ecosystem to open their offices in Saudi Arabia. 

Some of the noted companies that opened their regional headquarters in Saudi Arabia in recent months are PwC Middle East and GE Healthcare. 

He also added that Saudi Arabia is a stable destination for international investors, at a time of geopolitical tensions and economic headwinds. 


Riyadh, Doha sign multiple deals across various sectors

Riyadh, Doha sign multiple deals across various sectors
Updated 05 December 2023
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Riyadh, Doha sign multiple deals across various sectors

Riyadh, Doha sign multiple deals across various sectors

RIYADH: Saudi Arabia and Qatar have signed multiple agreements and memorandums of understanding as both nations continue to strengthen their relationship. 

These deals, which are expected to enhance trade and economic relationships between Saudi Arabia and Qatar, were signed during the 44th Gulf Cooperation Council Summit in Doha on Tuesday. 

Saudi Arabia’s sovereign wealth fund and the Qatar Investment Authority signed an MoU to accelerate investments in the energy and infrastructure sector, according to a report by the Qatar News Agency.

Another MoU was signed between Saudi Arabia’s Digital Government Authority and Qatar’s Ministry of Communications and Information Technology to promote cooperation between the two nations in the field of digital governance. 

Saudi Arabia’s Prince Saud Al-Faisal Institute for Diplomatic Studies signed an additional MoU with Qatar’s Diplomatic Institute of the Ministry of Foreign Affairs to cooperate in the field of diplomatic training. 

The Saudi Central Bank, also known as SAMA, signed an MoU with its counterpart in Qatar for cooperation between financial institutions. 

Another agreement was signed between the Saudi Authority for Intellectual Property and Qatar’s Ministry of Commerce and Industry to further collaborate in the field of intellectual property. 

An additional cooperation agreement was signed between the Saudi Broadcasting Authority and Qatar Media Corporation to develop relations in the radio and television industries. 

The two countries also signed a memorandum of understanding for cooperation in the fields of sports. 

On Dec.4, foreign ministers of Qatar and Saudi Arabia held a meeting in Doha to develop bilateral relations. 

“Today we held the first meeting of the executive committee of the Qatari-Saudi Coordination Council in Doha, where we discussed ways to develop bilateral relations within the framework of the executive committee,” said Qatari Foreign Minister Sheikh Mohammed bin Abdulrahman Al-Thani, who is also the country’s prime minister. 

During the meeting, Saudi Foreign Minister Prince Faisal bin Farhan and Al-Thani discussed ways to deepen cooperation in areas of mutual interest. 


COP28 president hails global leaders’ practical initiatives at final dialogue

COP28 president hails global leaders’ practical initiatives at final dialogue
Updated 05 December 2023
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COP28 president hails global leaders’ practical initiatives at final dialogue

COP28 president hails global leaders’ practical initiatives at final dialogue

RIYADH: COP28 President Sultan Al-Jaber has applauded world leaders for their practical initiatives during the final dialogue, expressing optimism for the continued “open mindset” throughout the remainder of COP.  

This comes as high-level dialogues between the COP28 Presidency and the International Energy Agency received a strong endorsement of practical actions. 

The conclusion of the dialogues, co-chaired by Al-Jaber and the executive director of the IEA, Fatih Birol, marked a significant achievement, bringing together over 40 high-level leaders, including four heads of state and 18 heads of delegation and ministers from diverse regions.  

Al-Jaber said: “I am encouraged by the practical actions brought forward by world leaders today at the final dialogue, and I hope that you take this open mindset and optimism throughout this COP.” 

Addressing the significance of the dialogues, Al-Jaber emphasized the need for collaboration, stating: “This series of dialogues has allowed us to converge on the critical elements of the just energy transition. The transition will not be straightforward, but it will be harder if we cannot agree on its central components.”  

Birol echoed this sentiment, expressing satisfaction at the alignment and support for the IEA’s five goals for COP28.  

These goals include tripling renewable capacity and doubling energy efficiency by 2030, a structured decline in fossil fuel use, commitment from the oil and gas industry to align with 1.5 degrees, and financing mechanisms for clean energy in developing countries. 

The leaders showed strong support for the COP28 presidency’s Global Renewables and Energy Efficiency Pledge, with over 110 countries signing up to the initiative.   

Urgency on the coal front emerged as a key consensus, with a focus not only on preventing new unabated coal plants but also on accelerating the retirement of existing facilities. 

As the final dialogue unfolded during the World Climate Action Summit as part of COP28 in Dubai, heads of state, government leaders, and international organizations convened to solidify their commitment to an orderly energy transition.  

Al-Jaber urged participants to carry the open mind and optimism demonstrated during the final dialogue throughout COP28, reinforcing the importance of collective action in addressing the pressing challenges of our time.  

This positive momentum sets the stage for further deliberations and collaborative efforts at COP28 UAE, hosted at Expo City Dubai till Dec. 12.